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Editorial: Time running out for Pa. property tax reform

The Evening Sun

Posted:
08/20/2014 11:33:44 AM EDT

One year and five months: That’s how long property tax reform has been stalled in the Pennsylvania Senate Finance Committee, reports PA Independent, an online news service that covers state government.

Actually, 17 months is just a drop in the bucket compared to the more than three decades that property tax reform has been discussed in Pennsylvania. School districts and property owners in some parts of the state have been clamoring for about 30 years.

But it’s been during the past year and a half that the movement has become legitimized within the Legislature.

Schuylkill County Republican Sen. David Argall is a main sponsor of Senate Bill 76, currently stuck in the Senate Finance Committee.

According to the PA Independent report, Argall acknowledges the bill doesn’t have the support to get out of committee but he has a strategy to get around that.

He told PA Independent he wants to “amend the legislation into another bill that’s already ready for a floor vote.”

“I believe we have the votes we need on the floor,” Argall said.

Senate Bill 76 would eliminate school property taxes and replace the revenue with a higher sales and personal income tax. The sales tax would also be expanded to apply to more goods and services, which has drawn opposition from groups that provide some of those good and services. (Note of transparency: the Pennsylvania News Media Association has opposed the legislation because it taxes newspaper and advertising sales.)

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Other opponents have questioned the proposal’s potential to raise enough revenue to fund public schools. And of course in some parts of the state, the property tax is not seen as a big issue.

In southeastern Pennsylvania, where the tax burden to fund schools is higher than in other areas, there is a groundswell of support.

Although Argall told PA Independent his strategy could get SB76 on the path to the governor’s desk, we have our doubts.

PA Independent’s report noted the governor has not thrown his support to property tax reform, even though he has said he would sign the legislation if it came to his desk.

Judging from Gov. Corbett’s track record with this Legislature, we’re not sure it makes a difference if he supports property tax reform or not. He is currently touring the state pushing for pension reform as a means to property tax relief, and despite his push, action to address the state’s $50 billion pension shortfall fails to get traction in the General Assembly.

“Until the Senate returns in September, nothing’s happening, the same as it’s been for nearly a year and a half,” PA Independent wrote of tax reform. We add that “the same” has existed for much longer, 30 years in fact. Argall says he’ll re-introduce the legislation again in January. And the proponents will still be here.